Unfair and Deceptive Trade Practices in the Landlord – Tenant World

The Federal Trade Commission Act or the FTC Act is the doctrine that allows for treble damages or three times the damages that involve unscrupulous and/or unsconsionable behavior.

As this pertains to the Landlord- Tenant relationship, it can be applied to the sentiment that a Landlord cannot expect and/or continue to accept full payment for substandard properties. When the landlord refuses/fails/prolongs repairs to the property and thus making the property unfit for human habitation, then there comes in the concept of “rent abatement”.

In some states such as Virginia, the tenant initates a legal claim for rent abatement via placing their rental payment(s) in escrow with the court. This can only be done after the tenant has notified the landlord in writing, AND allowed for the passage of 21 calendar days for non-emergency conditions and 7 days for emergency conditions. Also, the tenant has the option of requesting assistance from the local code enforcement agency, who will come to the property to conduct an inspection and determine as to whether or not the property is in compliance with the local code or ordinances. If the property is shown to not be in compliance, the code enforcement agency will conduct a formal hearing with both the tenant and the landlord and issue a ruling as to whether or not the property is fit or unfit for human habitation and whether or not the defects can be repaired with the tenant still on the property or not.

In North Carolina though, the tenant must still continue to pay the full rent to the landlord, and then initiate a “Complaint for Money Owed” against the landlord. In addition, the tenant can also use the Unfair and Deceptive Trade Practices as a counterclaim to the a Summary Ejectment Complaint or Eviction Complaint. In North Carolina, the tenant cannot unilaterally decide to withhold payment from the landlord.